Month: May 2011

IPO Fun Facts from Renaissance Capital: Not Even Close to Bubble Levels

Thursday, May 19, 2011

Renaissance Capital provides a ton of great information relating to the IPO market in the US and globally.

As Linkedin begins trading today, its a perfect time to take a look and see if there is anything we might glean as the IPO market is often associated with the health of markets in general and more specifically the demand for equities.

First, IPO’s have increased thus far this year over last year by 23% and, with Linkedin’s ($LNKD) offering today, will surpass all of 2009.  The chart below provides perspective here not only of these past few years but also of the euphoria of the NASDAQ bubble as well as the dearth in 2008 and 2009 during the meat of the credit crisis.

Next, IPO pricings compared to range which provide, perhaps, the most direct glimpse at demand for shares in aggregate.  Again, there’s a nice rebound from last year and a full recovery above the mean in the wake of 2008 which registered only 7% pricing above the range.

There’s an insidious theme bubbling up, especially on a day like today when the first large social media IPO is set, comparing the present period to that of the late 90’s into 2000.  Observers were hugely affected by those events and so they loom in the psyche and flash lucidly to the forefront of recollection when events even remotely similar present themselves.

The data provided here though provides some perspective. While righting itself from credit crisis levels, the IPO market is nowhere near NASDAQ bubble levels.

Thanks again to Renaissance who provides this data and much more in well presented charts and graphs.

The Rise of the Market Participant Editor in Finance Media

Monday, May 9, 2011

There’s a new breed of writers, though, who are taking advantage of more efficient publishing technologies such as StockTwits and WordPress in order to communicate actionable information directly to those who are also invested.

These guys are experienced market participants who focus squarely on making money. They hunt and have been hunted. They have tasted their own blood on their lips and they eat what they kill.

There’s a big difference between reporting the news and making money.

Traditionally, financial news journalists have focused on reporting the history and facts and putting new developments into context.  This is where they excel and it is a critical function.  But they are less proficient in analyzing the effects new information has on price.

There’s a new breed of editors, though, who are taking advantage of more efficient publishing technologies such as StockTwits and WordPress in order to communicate actionable information directly to those who are also invested.

These guys are experienced market participants who focus squarely on making money.  They hunt and have been hunted.  They have tasted their own blood on their lips and they eat what they kill.

The market participant editor puts his/her market opinions out there in real time for educational purposes but also to the scrutiny of readers many of which are also pros.  They are perpetually being vetted and there is no net.

This is a beautiful thing because the best will gain an audience and gain the respect of their fellow investors and traders over time.  Its also a huge win for readers because they now have access to more high quality actionable information

We have set out building platforms to facilitate the expression of these ideas in real time.

The collection of talent on our StockTwits Streams and those who we are collaborating with on the StockTwits Blog Network is already astounding and it is growing fast.

Load More Posts